Are Mobile Homes Eligible For VA Appraisal?
In our last few posts we’ve discussed the types of properties eligible to be appraised by the Department of Veterans Affairs for a VA home loan. One type of property we haven’t discussed up til now on this issue? Manufactured homes or mobile home properties. Mobile homes are also eligible for VA appraisal when they meet specific criteria.
There are two basic types of manufactured home, according to VA regulations. One type is the manufactured home classified as real estate. Other types of mobile homes, often called modular homes, may also be eligible when they meet the VA requirements.
For manufactured homes classified as real estate, the VA says it’s possible to apply for a 30-year VA mortgage provided the property is both classified AND taxed as real estate. The mobile home must be permanently fixed to a foundation and it must conform to all building codes applicable to real estate. Manufactured homes classified as real estate are be held to the same standards as ordinary homes including the VA’s minimum property requirements. They must also comply with zoning laws in the local area.
For other types of manufactured homes such as modular homes, the VA rulebook says VA appraisal is permitted, “Provided they are covered by a HUD structural engineering bulletin, or constructed to the standards of the State in which the factory is located and receive that State’s approval certification.”
These homes may be delivered in sections to be assembled to a foundation or chassis not supported by wheels. Traditional mobile homes supported by wheels may also be eligible for VA appraisal, but it’s important to point out that for modular and traditional mobile homes not classified as real estate, the terms of the loan (including the term of the VA home loan) can be quite different than for mobile homes which are defined as real estate.